Investing in real estate is considered one of the safest forms of capital investment. This is the path taken by more than half of Poles with financial surpluses, which proves the popularity of the phenomenon. There are many types and ways to invest in real estate. Each of them has a different degree of risk and a different level of involvement in the project. Let’s meet the most important of them.
Long-term apartment rental
This is undoubtedly one of the most popular ways to invest in real estate. Thanks to long-term rental of an apartment in a large city, we can gain on average slightly over 5% per annum. This type of capital investment pays off most. In this city you can count on the highest rates of return on investment. There are different types of real estate property and you need to be specific about it.
Short-term rental of premises
Renting an apartment to tourists is another form of earning on real estate. This rental model became popular on the wave of so-called “Sharing economy” or sharing economy. Its assumption is to share, borrow and exchange products instead of buying them. Thanks to this form of renting the premises, we can often count on a higher profit than in the case of long-term rental. At the same time, we must prepare for the need to engage in the booking process with constantly changing tenants. Therefore, a good solution is to cooperate with a professional operator who will take care of renting and managing an apartment or apartment. In this case, we can also count on high rates of return and obtain large time savings. With the
Investment in a condo hotel or apartment with managed rental
We stay on the topic of short-term rental. The only difference is that by investing in a room in a condo hotel, we avoid having to be directly involved in renting the property. This obligation is taken over from us by a professional entity, often an experienced hotel operator. This form of investing in real estate is usually associated with a higher annual rate of return than in the case of independent long-term rental of an apartment. If you decide on this type of capital investment, you should carefully examine the specific offer. The most important is the location, which should be attractive to tourists throughout the year. It is worth deciding to buy the property from a developer who already has experience and results on the condo market.
Office stands in co – workers
“Coworking” (coworking) is spaces that allow people with different professional roles to work together. They are also becoming more and more popular. They are often used by freelancers or start-ups. A good idea for investment is to create such a place in an attractive location for employees, e.g. in the city center.
If you have more modest resources, you might want to be interested in buying individual office spaces in a coworking space, for which users pay rent. This is a relatively new offer on the market, but it is becoming more and more popular due to the high demand for this type of jobs. Every year, the number of people involved in freelancing is growing, and in Poland the start-up ecosystem is growing more and more dynamically, which allows for the creation of such companies.